Accountant General - Uganda Budget Information

advertisement
GOU Treasury Single Account and
Decentralization of payment of Salaries
By
Accountant General’s Office
1
Discussion Areas

TSA Implementation

Decentralization of payment of Salaries


IFMS
Other Issues of concern
2
GOU TSA
 Gou
has introduced a Treasury Single Account in
central Government which will be rolled to Local
Governments
 The
modalities of its implementation in LGs will be
communicated in future.
Handling
of Salaries and Pension, Transfers to Local
Governments will not change in the medium term
3
TREASURY SINGLE ACCOUNT
(TSA) CONCEPT
A unified structure of government bank accounts through
which government transacts all its receipts and payments
giving a consolidated view of government cash resources.
4
Challenges of the current
Banking Arrangements
–
–
–
–
–
–
The large number of active bank accounts.
Monitoring and reconciliation
The lack of focus on the aggregate cash position
Lack of active cash management
Dormant Accounts
Bank charges
5
Consequences:
–
–
–
Reliance on cash rationing for
budget/cash releases
Borrowing costs incurred whilst
substantial unremunerated balances of
public cash
Dormant Accounts pose a risk of fraud
6
Decentralization of payment of
salaries
 MoFPED
and MoPS are in the final stages
of decentralizing payment of salaries for
votes on the IFMS
7
Back ground of payment of
salaries
 Gou
moved from cash payments to cheques (Bank
schedules)
 Challenges
-Ghost payments (same schedule to different banks)
-Overprovision, diversions, arbitrary deductions,
“teeming and lading”, collusion with banks and issues
related with cheques.
8
STP ARRANGEMENT
 Introduction
of EFT
 Centralised payrolls to ease transfer
 Opened bank account at BOU for each vote
 Changed the release process
 Created a review process by the A/O
9
Benefits under STP
 Non
diversion of wage budget
 Faster
 Minimised collusion
 Easy traceability
 A/O involvement (Preliminary payroll)
10
Challenges under STP
 Largely
out side IFMS ( the main payments
system)
 Neglect of ownership by votes (lack of payroll
processing follow up, no bank reconciliations,
deduction follow up)
 Bounced EFTs and follow up
 Too many transactions (Batch processing)
 Slow feed back response
11
Need for change of current
process







Synchronise the salary bank account structure with TSA
concept
Need to trace payments to individual under one payment system
Need to fully hold accountable the A/O of a vote
Opportunity to clean up the payroll
Address file transmission risks under UCS
Decommissioning of UCS
Address transmission file volume challenges under BOU
12
Proposed Business Process
 Utilise
the output under IPPS
 Votes generate a table mapping Employee
IFMS number to IPPS/Computer number
forward to Treasury format and upload (One
off) for the current employees (New
employees fill the required form with IPPS/
computer number at set up)
 Set up deduction recipients (URA, NSSF, etc)
13
Proposed Business Process
Monthly
 MoPS
generates Payroll information from
IPPS (extract details of IPPS No. Gross pay,
deductions, net pay)- Process can start early on
vote by vote basis
 MoPS
forwards to Treasury
 Based on the extract Treasury issues a”
virtual release” to enable A/O commit for
salaries
14
Proposed Business Process
 Treasury
runs a program pick the details,
generate interface file to match
IPPS/Computer No. to Supplier No., net pay,
charge Account details
 Upload the file into IFMS
 Votes run a program to pick up information
and create invoices in their votes
 Invoices are approved and paid through the
IFMS links
15
Challenges envisaged
 Incomplete
migration to IPPS for IFMS votes
 Process applies to IFMS votes (agree
arrangement for the LG votes)
 Need to budget for salaries under one
program for the time being as IPPS reports
are being realigned to departments
 Different pay dates
16
IFMS Upgrade
IFMS was shutdown from 8th to 21st
October 2013
Upgrade from Oracle11i to R12 was
completed successfully
Gou plans to roll-out the IFMS under
Tier 2 to other LGs esp. Municipal
Councils
Regular reconciliation of bank
Accounts
17
IFMS Upgrade
•Need
to post all transactions to GL on
a daily basis to enable timely closure of
periods (Non closure of periods was a
challange during the Upgrade)
18
Other Issues of Concern
•Validation
of General Fund Accounts
at the beginning of every FY
•Monthly Reconciliation of Salary
Account (customer_inquiries@bou.or.ug)
•Payment of unapplied EFTs
•Receipting of transfers from Treasury
to avoid Audit queries
19
Other Issues of Concern
•Unapplied
EFTs (Write to MoPS after
correcting the Account details then
Mops sends a file to Treasury to effect
repayment
20
Thank
you
21
Download